Asian markets ride firm with new rally
Mumbai: Asian markets are experiencing an uplift following a smart rally in the US and European markets, with the Nikkei, the Shanghai Composite index, the Straits Times and The Hang Seng, all up in morning trades.

The KLSE Composite, SET Composite and PSE Composite indices are marginally in the green. The Kospi index however bucked the trend.
Back to News Review index page  

Wall Street continues its rally
Wall Street rallied for a second session on Thursday with investors overlooking concerns over inflation expressed by the Federal Reserve.

The Dow Jones industrial average surged nearly 92 points and the Nasdaq showed some positive trends as well.

Meanwhile, strong May sales boosted the retail sector and bolstered optimism about the consumer picture. Oil prices fell further on data showing increased domestic reserves and helped accelerate the market's advance.

The Dow climbed 91.97, or 0.82 per cent, to 11,260.28. Broader stock indicators surged. The Standard & Poor's 500 index gained 15.62, or 1.23 per cent, to 1,285.71; the Nasdaq surged 40.98, or 1.88 per cent, to 2,219.86, returning to positive territory for 2006.

Bonds recovered from yesterday's dive, with the yield on the 10-year Treasury note down to 5.1 per cent from 5.13 per cent late in the prior session. The US dollar was flat against other major currencies; gold prices declined to about $635 an ounce.

Overseas stock markets recouped earlier losses with Britain's FTSE 100 gaining 0.45 per cent, Germany's DAX adding 0.26 per cent and France's CAC-40 higher by 0.35 per cent.
Back to News Review index page  

NYSE Group to acquire Euronext for about $10bn
New York: NYSE Group Inc. agreed Thursday to acquire Euronext NV for nearly $10bn in cash and stock, creating the first trans-Atlantic securities market. The 214-year-old New York Stock Exchange beat off a competing bid by Deutsche Boerse AG to acquire Paris-based Euronext, which operates bourses in Paris, Amsterdam, Brussels and Lisbon.

If approved by shareholders and regulators, the New York Stock Exchange and Euronext will handle about $2.1 trillion in stock trades each month and have a market value of $20bn.

The acquisition of Europe's second-largest stock exchange is significant in that it ushers in a new era for financial markets.

Investors can now trade stocks, options, futures, commodities and corporate bonds on two continents up to 12 hours a day.

NYSE's acquisition will add pressure on rival exchanges, chiefly the Nasdaq Stock Market Inc. and Deutsche Boerse, to strike similar deals in order to avoid being left behind in global consolidation.

The newly formed NYSE Euronext's market value would make it the globe's most valuable securities market, overtaking the Chicago Mercantile Exchange Holdings Inc., which is worth some $15.6bn.
Back to News Review index page  

Bank of China lists at 15 pc premium on stock market debut
Hong Kong: Bank of China shares made a rousing debut on the Hong Kong stock exchange yesterday in its $9.7bn (£5.2bn) flotation, the world's largest in six years.

Shares in the bank, priced at $2.95, rose as much as 16.1 per cent before ending the day at $3.40, up 15.3 per cent. The premium was all the more remarkable as it materialized in the backdrop of a slipping Hang Seng index, which dropped 1.3 per cent yesterday.

Most analysts and investors had expected the shares to rise by only 5 to 10 per cent on their first day of trading.

Bank of China, the country's second-largest lender, sold 10.5 per cent of its enlarged share capital.

The shares attracted huge demand: they were 70 times subscribed by retail investors in Hong Kong and 20 times by international institutions.
Back to News Review index page